Vedanta net soars on metals surge
Miner Vedanta Resources Plc posted a forecast-beating 187 per cent profit on a rebound in metal prices and stronger output, and pledged to conclude a long-awaited buyout of minority stakes.
Investors have complained about the complex structure of Vedanta, in which minorities have holdings in the firm’s units.
London-listed Vedanta expects a final arbitration hearing in coming months about how much to pay the Indian government for its minority stakes in units Bharat Aluminium Co. (Balco) and Hindustan Zinc of 49 per cent and 29 per cent respectively.
“We expect this matter to be settled sometime in August and once Balco is settled, we expect Hindustan Zinc... should get decided along the lines of Balco,” Chief Executive MS Mehta told a conference call on Thursday.
The company was consulting stakeholders on further restructuring, but there were no immediate plans, he added.
Vedanta — with operations in India, Australia and Zambia — has previously looked at how to buy up some of the 40 per cent minority interests in units Sterlite Industries and 49 percent in iron ore firm Sesa Goa.